Archive for January 24th, 2014

January 24, 2014

Is There a Relationship Between Monthly Giving and Bequests?

From time-to-time, I will invite an outstanding, published book author to write a guest post. If you’d like to learn about how to be a guest blogger, click on the “Authors” tab above.

Monthly Giving Cover - Erica WaasdorpThis week, I have invited Erica Waasdorp, a self-proclaimed “philanthropoholic,” President of A Direct Solution, and author of the best-selling book Monthly Giving: The Sleeping Giant. Erica explains why nonprofit organizations should have a monthly donor program, explores trends in monthly giving, and provides plenty of useful how-to tips all in a mercifully brief, 131 page book.

Jerry Huntsinger, a direct-response fundraising guru, said of Erica’s book, “Good job! It’s the best resource book I’ve ever seen on the subject. You certainly put a lot in it.”

I agree with Jerry. As I read Erica’s book, I was reminded of the first time I wrote on the subject. In 1989, I wrote an article for Donor Developer that predicted that every charity would have a monthly donor program within five years. I believed in monthly giving and its power to help transform nonprofit organizations. I still do. Sadly, my prediction was wrong. It’s now a quarter-century later, and most nonprofits still do not engage in a robust monthly giving program. Nevertheless, they should.

In the 2011 State of the Nonprofit Industry Survey, Blackbaud asked philanthropy researcher Adrian Sargeant:

Where do you see the largest opportunities for nonprofits to make an impact on their operations as we enter the next year?”

Sargeant responded:

Two words: monthly giving. Regular/monthly or sustained gift programs are currently revolutionizing the economics of fundraising. If your nonprofit doesn’t have one — it should get one. Lifetime values are 600-800 percent higher than would be the case in traditional annual fund giving. It’s also more resilient in the face of changes in the economy.”

Now, Erica shares some of her insights with you including a revelation about monthly and bequest giving:

 

You should know right off the bat that I’m a true advocate for monthly giving, aka sustainers, aka recurring gifts. Not surprising, because it’s really a great way to generate loyal donors for your organization. What is not to like about the ongoing revenue you will see coming in month after month after month?

I have been fortunate to be involved with large monthly giving programs generating millions of dollars of reliable income. It truly sustained organizations after major disasters such as September 11, 2001, Hurricane Katrina, Super Storm Sandy, to name a few, where all focus and attention and individual giving was elsewhere. Yet, that sustainer revenue kept coming in.

When you look at whom to target for monthly giving, there’s certainly an interesting mix of sources:

• Existing donors, who have been giving $10 or more and made two gifts in the past year.

• Existing donors, who have been giving one gift a year for the past few years.

• New donors, who are willing to try this convenient way of giving right away (yes, this does work!).

• Reactivated donors, who just came back into the fold and they used to give several gifts in the past.

Is there anything you recognize here? 

read more »

%d bloggers like this: